✅The Union Cabinet approved the amendment of the Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 (‘MMDR Act’) for specifying the rates of royalty in respect of 3 critical and strategic minerals, namely, Lithium, Niobium and Rare Earth Elements (REEs).

♻️Details :

✅The amendment delisted six minerals, including Lithium and Niobium, from the list of atomic minerals, thereby allowing the grant of concessions for these minerals to the private sector through auction. 

✅Further, the amendment provided that the mining lease and composite license of 24 critical and strategic minerals including Lithium, Niobium and REEs (not containing Uranium and Thorium), shall be auctioned by the Central Government.

✅This cabinet approval will enable the Central Government to auction blocks for Lithium, Niobium and REEs for the first time in the country. 

✅Royalty rates on minerals are an important financial consideration for the bidders in the auction of blocks.

♻️Significance :

✅Critical minerals such as Lithium and REEs have gained significance in view of India’s commitment towards energy transition and achieving net-zero emission by 2070. 

✅Lithium, Niobium and REEs have also emerged as strategic elements due to their usages and geo-political scenario.

#GS3 #Economy #Mining #Prelims

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